After six months in the job, NG Bailey chief executive David Hurcomb has completed a strategic review and聽used an interview with the Yorkshire Post to set out his vision for the company.
Mr Hurcomb said that NG Bailey鈥檚 over-reliance on construction had left it 鈥渧ery, very exposed鈥� when the recession hit. Turnover fell from 拢600m in 2008/09 to 拢464m in 拢2009/10. Profit after tax of 拢13.5m last year, after an 拢11m loss the year before, was only because of a revaluation of its investment portfolio and taking a profit on some of its most successful projects coming to a financial close.
Mr Hurcomb, formerly of Carillion and Mansell, warned that the building industry was now going through a double-dip recession, with private sector activity failing to offset public spending cuts. He said that fewer projects and downward pressure on gross margins would hit profitability in 2010/11, and 2011/12 would continue to be difficult.
.png)
鈥淚t鈥檚 going to be a tough two years, but we are very fortunate. We have a strong company,鈥� he said.
Mr Hurcomb is aiming to increase revenue in the energy sector from 拢5m to 拢50m and the building services maintenance division from 拢40m a year to 拢60m. He also hopes to win up to 拢100m of work from local authorities outsourcing building maintenance operations.
He told the paper: 鈥淢y vision is to make sure in five years鈥� time we have a stronger, more diversified, more resilient business that is well represented in a number of sectors, which will include building, but will also include engineering services, maintenance, ICT, energy, nuclear, these things.鈥澛�
Got a story? Email news@theconstructionindex.co.uk
